RITES Limited announced the securing of a significant contract worth ₹105.69 Crore (excluding GST). The Letter of Acceptance (LOA) was received from the Research Designs and Standards Organisation (RDSO), Lucknow. This agreement entails the comprehensive maintenance of a dedicated test track located within the Jodhpur division of the North Western Railway (NWR). The contract is classified as domestic and has an execution period of 60 months.
RITES Secures Key Maintenance Order
RITES Limited, a Schedule ‘A’ Enterprise of the Government of India, has informed the exchanges about a significant new business win. The company has received a Letter of Acceptance (LOA) for a major contract, further enhancing its service portfolio in railway infrastructure maintenance.
Contract Specifics and Value
The details of the awarded contract are as follows:
- Awarding Entity: Research Designs and Standards Organisation (RDSO), Lucknow.
- Scope of Work: The contract involves the comprehensive maintenance of a dedicated test track situated between Gudha and Thathana Mithri stations in the Jodhpur division of the North Western Railway (NWR).
- Contract Value: The broad consideration for this work stands at Rs. 105.69 Crore, excluding GST.
- Execution Period: The contract is set to be executed over a period of 60 months from the date of the LOA issuance.
Entity Classification
The transaction involves the following classifications:
- The awarding entity, RDSO, is a Domestic Entity.
- The nature of the transaction confirms that the contract is between Government and Government Company, indicating that promoter/promoter group companies do not have any conflicts of interest, and the terms are established at ‘arm’s length’ due to the government relationship.
This order is crucial for RITES, demonstrating continued trust from governmental organizations for specialized railway maintenance and engineering services.
Source: BSE
